It’s a pretty rough time to be in retail.
On the one hand, it seems like most every small retailer is being gobbled up by a larger competitor.
Related: Amazon makes a harsh decision amid concerning customer trend
On the large, corporate side of things, however, things aren’t any simpler.
Bigger retail companies are grappling with a variety of problems that are now common among most stores around the U.S.
Some of these include crushing levels of inventory shrink (the industry term for theft and other losses), changing customer preferences, and a race to the bottom for prices.
This is especially difficult when shoppers expect nearly-instant and free shipping on everything — a complicated effort when supply chains are either tied up or tariffs are taking their toll on global inventory.
No matter which way you slice it, retail is a hard business to be in.
And that’s especially the case for many legacy mall retailers, who once enjoyed relative prowess in the U.S. shopping arena.
What was once considered the gold standard for retail — that is, having a large brick and mortar presence in shopping malls around the country — has now become something more of a death knell.
Mall retailers continue to struggle
Across the country, many retailers that depend on malls for business are finding survival an increasingly uphill battle.
With the exception of a few luxury malls located in particularly wealthy urban areas, the overarching trend across the country is that indoor shopping malls are on a downward trajectory.
More closings:
- Popular local Dairy Queen rival suddenly closing, no bankruptcy
- Another big Mexican chain closing down restaurant, no bankruptcy
- UPS suddenly closing more stores amid chaotic new change, layoffs
- Popular fast-food burger chain closes all restaurants in key area
Popularity has waned for a variety of reasons.
It’s true that a lot more shoppers prefer to find products online, where things are often cheaper and more selection abounds.
But it’s also just an increasingly unappealing prospect to trudge through an indoor shopping mall in search of everything from furniture to formalwear.
In the 1980s and 1990s, at the height of the indoor shopping mall, the average U.S. consumer spent 12 hours per month inside of one.
Now, that number has dramatically dwindled, as it’s easier to find products either online or at discount stores closer to home.
Large retail issues an update
Some of the largest mall retailers are the most vulnerable amidst changing consumer behavior.
Forever 21, an iconic fast fashion store clustered mostly in and around shopping malls, is one such brand.
The company filed for Chapter 11 bankruptcy for the second time in six years in March 2025.
After it was unable to find a buyer, its operating parent company, F21 OpCo, said it would begin closing down all 354 of its leased U.S. stores by May 2025.
Related: Another giant cosmetics brand closing store unexpectedly
Now, however, Forever 21 has issued an update on social media, indicating things may not be completely over for the brand.
“Hey Forever 21 Fam,” Forever 21’s official Instagram wrote in a post. “We know there’s been some buzz, and we want to clear things up. Forever21 isn’t going anywhere and we are still committed to bringing you the styles you love. Right now, we’re evolving, refreshing and building what’s next.”
“We get that change can feel unexpected,” the post continued, “but we’re excited for what’s ahead, and we’ll be sharing more with you soon. Thanks for sticking with us, you’re the heart of everything we do.”
Forever 21’s official website contains some information about the ongoing bankruptcy process.
“Decisions about which stores will ultimately close are ongoing, pending further discussions with landlords and potential buyers,” the site reads.
Related: Troubled retailer puts 100s of stores at risk after drastic move
